Suggestion: Dogecoin a Security! [FUD dogepedia article]

[tjstebbing]

Considering the legal case in the US that lists Dogecoin as a security (falsely) we should provide an article for Shibes under the US legal system to explain why Dogecoin is not a security.

[Doge36588]

On the Properties of Dogecoin's Universal Currency

First, the blockchain cryptocurrency is a financial and technological revolution, the trend is unstoppable and cannot be stifled. Unless human beings return to the era of no internet. It was born to resist the serious over-issuance of fiat currency and the hyperinflation of the currency brought about by the shrinking of personal assets. Its decentralized distributed accounting ensures the security and credit mechanism of assets.

Two, fixed-quantity cryptocurrencies are fatally flawed. The properties of money include symbols for circulation settlement and equivalent exchange. At the same time, it can supplement the target of circulation losses and new wealth; it is determined that the currency really used for daily settlement should maintain a slight inflation. A fixed quantity equals deflation. People’s psychology believes that it will always appreciate (there is only so much, and it will definitely rise), and they are unwilling to really use it for daily settlement, but only for speculative currency speculation. This limits it to only a small group of people and cannot be widely used, so it cannot really be used for daily settlement applications. This situation has advantages in the early days of blockchain currency development. As various tokens become more numerous, this appreciation advantage is exhausted. On the contrary, due to the loss of circulation, the inability to popularize the public, and the lack of real application, it eventually returned to zero. As the losses increase and reduce to a critical amount, it will not be able to survive and hype in its own niche circle. At present, 99.99% of blockchain currencies are in a fixed number mode, and one ten thousandth is in a fixed additional issuance mode. In the future, 90% of the fixed amount of blockchain currency will be reset to zero, and 10% of the dominant currency will only be used in a fixed ecosystem. As the first cryptocurrency, Bitcoin has various advantages such as preconceived ideas, large mass base, and high value. It is used by consortia and countries as foreign exchange reserves, which is equivalent to digital gold. The other 10% high-quality fixed-amount coins, no matter how good your technology and ecology are, can't replace Bitcoin, because it always develops a few years longer than you, 10 times, 100 times, 10,000 times the mass base , that is, consensus stronger than you.

Third, Dogecoin is the best choice among the unlimited cryptocurrencies that meet the monetary attributes. Dogecoin has always been around longer than the cryptocurrencies created later. Has a mass base of millions. Dogecoin's charitable and tipping culture, dog's emoji: cute, humorous, self-irony and other feelings can quickly capture the hearts of people all over the world regardless of nationality. Dogs have been with human development since ancient times and are good friends of human beings. It can be seen that the cryptocurrency named after the dog is born with its own consensus foundation. The strong consensus ability determines his strong vitality. As the saying goes: those who win the hearts of the people win the world.

Fourth, the settlement speed of Dogecoin is ten times that of Bitcoin. Transaction fees are extremely low. Bitcoin can be mined for a total of 131 years. When the last Bitcoin is mined, who will maintain the network computing power of Bitcoin? Dogecoin can always be mined because Dogecoin is adding 5 billion every year. Those who question Dogecoin's technological backwardness do not see the mass base, and consensus comes first. It is difficult to have a consensus without a few years of development in cryptocurrencies.

Fifth, the micro-inflation of Dogecoin is less than 5% and decreases every year. 3.63% in 2023, 2.74% in 2032, and 0.8% in 2122. The world's economic growth is less than 5%, and this micro-inflation of Dogecoin is in line with the development law of the world economy.

Below we discuss the above points in detail.

1. Why is decentralized cryptocurrency a trend?
   The world monetary system is now dominated by the dollar. The constant over-issue of the US dollar has brought many problems to the world. Many countries want to get rid of the dollar. In particular, small and medium-sized backward countries and regions want to get rid of the US dollar and other economic sanctions. Blockchain cryptocurrency is a good way to do this. So it is difficult for the whole world to reach a consensus to limit blockchain cryptocurrencies. Secondly, the convenience of blockchain cryptocurrency in the field of international payment is obvious to all. A currency cannot be a cryptocurrency that is centrally controlled by a business or team. Why do others trust you? It is better to believe in yourself than to believe in yourself and create a cryptocurrency yourself. In the same way, how can the cryptocurrency created by yourself gain the trust of others? It is very difficult to reach a consensus, so it is a trend to choose a cryptocurrency that has reached a world consensus through complete decentralization.

2. Why can't the amount of currency be fixed?
   Currency has always been inflationary, and there is no fixed amount. Regardless of the early shells, gold, silver, copper coins, or Jiaozi in the Northern Song Dynasty and current paper money and electronic money. The difference is only benign micro-inflation and hyper-inflation. Some people say that gold is fixed and scarce. In fact, gold is constantly being mined. It remains slightly inflationary. Hyperinflation became a frequent occurrence in human history when paper money became popular. Everyone who is engaged in the economy understands that deflation and hyperinflation are not conducive to economic development. Fixed quantity equals deflation, similar to scarce antiques, which have collectible value but lack the function of circulation. The reason why money is money is that its main function is to circulate and act as an equivalent exchange. Secondly, there must be a self-renewal function to make up for the loss in circulation. If a coin has a fixed amount, the long-term trend is death, and theoretically it will be lost. With so many people all over the world, there are countless cases of lost wallets every day. When the cryptocurrency represented by Bitcoin entered the human currency development. In theory, the encrypted currency will never disappear on the chain, but it will be lost because the holder forgets the key, and it will never be retrieved, so that the coin will remain silent on the chain and lose its circulation, which is actually equal to loss in the currency system. With the development of Bitcoin up to now, no one carelessly protects their wallet keys, but accidents still happen. You also don't care when you have very few bitcoins in one of your wallets. There are also those who did not have time to explain the private key to the heir. There are frequent news reports that someone who held a large amount of Bitcoin died unexpectedly, and he did not have time to tell his family the private key.

Some people think that the fixed number of cryptocurrencies is good, and the price of the currency will only get higher and higher. This is also limited to the first cryptocurrency to emerge: Bitcoin. After ten years of development, the consensus of Bitcoin has been quite extensive, and most people know cryptocurrency through Bitcoin first. The distributed full ledger that has spread all over the world will only make latecomers more trust and choose Bitcoin. It's really hard for other cryptocurrencies to surpass Bitcoin. Because Bitcoin’s consensus is broader than that of any cryptocurrency. No matter how advanced other cryptocurrencies are, without consensus, everything is empty talk. The more main function of Bitcoin is reflected in the store of value, the positioning of digital gold. In the field of payment, it mainly occurs in the transfer of huge funds, foreign exchange reserves, and consortium fund transfers. Not suitable for daily consumption. Other cryptocurrencies with a fixed number cannot replace Bitcoin, mainly because the consensus degree is difficult to surpass, because most of the latecomers will only choose the cryptocurrency with the highest consensus degree and the safest. Then the long-term trend of these coins is that 90% of cryptocurrencies go to zero, and 10% of cryptocurrencies are used in the fixed ecosystem. There is only one Bitcoin, and it is impossible for all fixed-quantity cryptocurrencies to have its glory.

As mentioned above, a fixed quantity equals deflation, which is not conducive to circulation and economic development. If the number is fixed, everyone will hoard and wait for the appreciation. It is not conducive to daily payment and settlement, cannot be widely used, and there is no broad consensus. Without broad consensus, there will be no influx of new money. In addition, the shortage of funds under deflation is not conducive to investment and development of production. And hyperinflation like in Zimbabwe and Venezuela is disastrous. Only the micro-inflation that conforms to the laws of the world economy and at the same time satisfies the scalar amount of newly added property is the perfect currency that can both preserve value and fully circulate. Looking at all blockchain currencies, only Dogecoin meets this condition!

A fixed amount of cryptocurrencies also faces a problem. How to guarantee network and computing power after cryptocurrency mining is stopped? When the miners have no mining rewards and the handling fee is not enough to cover the cost, who will play with you? If the handling fee is increased, which is higher than the handling fee of the existing currency system, how much consensus will be lost. Dogecoin alone has unparalleled advantages. Dogecoin can always be mined, accounting and settlement will always exist, and there is no worry about the network and computing power; Dogecoin is not afraid of being lost, and has always had a replenishment capacity of 5 billion pieces per year. As long as the network exists, it can survive for a long time; Dogecoin is in line with the world's economic development and has a broad consensus. Therefore, in the long run, Dogecoin is the safest and most viable cryptocurrency.

3. Why can Dogecoin become the universal currency of the world?
   It is a miracle that Dogecoin has survived for so many years. It was originally a "joke coin" and survived the disappearance of many coins. The community is getting bigger and there are more and more supporters. It is the second largest currency after Bitcoin users. It can be said that in the past few years, it has survived purely by consensus. Bitcoin has previously been said to be digital gold status. Then we mainly analyze why Dogecoin will become the universal currency of the world?

First of all, what are the most important conditions for being a universal currency in the world?

1. Demonstrate fair and secure credit. Fairness is very important. This fairness is fair from its monetary system and design system, from its birth to its development process, to its final result. Guaranteed Credit Find answers in decentralized blockchain technology.

2. It is very stable, large in size, easy to carry and cut, and easy to circulate. Only when you are very stable can you use it as a ruler (currency standard) to measure other values ​​and wealth. This stability is reflected in the fact that its purchasing power does not increase or decrease over time. The volume here refers to the number of coins.

3. Globally recognized and accepted. The recognition here includes the consensus foundation that has been formed and the ability to be consensus.

Let's take a look at the characteristics of Dogecoin:

1. Dogecoin has a large consensus foundation. There are many people who support Dogecoin. Dogecoin is the currency with the second largest number of users, which has demonstrated its degree of consensus, and has already laid a good consensus foundation. Compared with the latecomers, you have always developed a few more years. While you are chasing me, I am also continuing to develop consensus. Facts have proved that without a few years or ten years of development, it is difficult to form a long-term consensus. You can copy and issue various coins, but you cannot copy consensus. Consensus takes time. I have passed the test of life and death for several years, and it is still a question mark whether you can survive a new currency.

2. Dogecoin has strong consensus ability. Looking at so many cryptocurrencies, Dogecoin has the richest culture. This is the real reason why it has survived purely on consensus for so many years. Charity, cuteness, irony, tips, Chinese zodiac and other cultural feelings make people quickly gain a good impression. Dogecoin emoticons are loved by children, adults and old people alike, because dogs have accompanied human civilization for thousands of years and are loyal and good friends of human beings. This love is already in the genes. Dogecoin, named after a dog, extracts and sublimates this love, and conveys emotion at the same time as it is used to convey value. This consensus ability determines that it will stand out from other competing currencies. As many exchanges describe it, Dogecoin comes with its own marketing capabilities. The Dogecoin community is active and has a strong grassroots cultural atmosphere.

3. The reasonable mechanism of micro-inflation reflects fairness and ensures the sustainability of the network and computing power. In the micro-inflation model, the annual increase minus the lost amount minus the scalar amount of newly added wealth reaches an equilibrium state. Its price growth momentum is driven by consensus growth. The coin will eventually be very stable when global consensus is reached. Only one's own stability can measure other values ​​and wealth. Therefore, when this currency reaches this equilibrium and stable state, its purchasing power will not increase or weaken in the future. It is fair to the coin holders and those who want to hold coins in the future, and there will be no problem of who exploits who.

The price of Dogecoin in the early stage (when it has not reached stability) will only increase with the increase of consensus. When the global consensus (stable state) is reached, the price of Dogecoin will stay at a certain height. Because the consensus has reached the peak at this time, the price boosting effect brought by the consensus growth has disappeared, and the balance of Dogecoin's own micro-inflation makes its price unabated and very stable. If Dogecoin replaces the world's currency, one Dogecoin is equal to $677. At this point, Dogecoin has reached the most stable state and the consensus has reached the top. And its micro-inflation minus the amount of continuous loss and the amount of added wealth in the benchmark is a balanced state. Neither deflation nor inflation, the price is stable without fluctuation, neither rising nor falling, reflecting the attributes of the currency standard. The results pointed to are fair to holders and non-holders, and there is no question of who exploits who. It can be stored and used for payment, which is conducive to circulation. For the beneficiaries who held Dogecoin at a low price before the global consensus, they benefited from their understanding of opportunities and trends. There are 5 billion Dogecoins per year for miners. At this time, the mining revenue worth 3.385 billion US dollars, who needs your fees. The network and computing power will always remain at a very stable and high level (guaranteeing credit), and consensus will be increased, and the status of the world's common currency will be unbreakable.

4. The characteristics of large volume and fast speed are convenient for circulation.
   The total amount of Dogecoin is more than 130 billion. It can meet the needs of 7 billion people in the world. The block generation speed of Dogecoin is 1 minute, and there is still room for improvement in the future. These objective characteristics determine that Dogecoin is more convenient to circulate.

5. Fairness of the whole process (completely pure decentralization).
   It is mainly manifested in the birth, development process and final result. From birth to reflect fairness, the cryptocurrency before 2014 was the best choice. The cryptocurrency before 2014 was purely a decentralized social practice. Developers and teams rarely make money. Dogecoin was born in 2013 as a joke and has no utilitarian purpose. The founders themselves were amazed that Dogecoin was still alive and alive so well. Witnessing the big bull market in 2013, many of the cryptocurrencies after 2014 were created for the purpose of making money. You can’t really know how many coins the project party has left in their hands. They operate cryptocurrencies in the name of decentralization, with a lot of pre-mined chips. After the big bull market in 2017, all kinds of chaos occurred. Various cryptocurrencies have sprung up. Summary: The cryptocurrencies after 2014 were not so purely decentralized since their birth, and many of them used the slogan of decentralization, doing centralized manipulation and harvesting. These cryptocurrencies may have a short-lived consensus, but they will not stand the test of time in the long run. Ultimately, people will still choose the most decentralized cryptocurrency with long-term broad consensus.

Equity in the development process. Many people have always believed that a cryptocurrency needs a project team to maintain in order to see hope. Some people think that a well-known company has issued cryptocurrencies, and a strong team has issued cryptocurrencies, and the cryptocurrencies they issued must have a future, and then they buy them in large quantities. If the project team is serious about doing things, you're lucky. If it is just for empty gloves and white wolves, it is purely a fraudulent routine of centralized operation. In the previous Ethereum, after a large amount of coins were stolen by hackers, the project team adopted a domineering hard fork and rolled back the transaction records. This is probably the strongest irony against decentralization. The existence of the project party is a threat to decentralization to a certain extent or even to a large extent. The project is open source, and decentralization should be maintained in a decentralized manner. The founder and original team of Dogecoin have long left Dogecoin, and they have lost their influence on Dogecoin. Currently, Dogecoin is jointly maintained by the Dogecoin community around the world. Dogecoin has been done not belong to any party or any organization, but belong to any party and anyone's Dogecoin. You have the ability to maintain it as well. It is not subject to any centralized control, and at the same time has a large consensus base, is truly decentralized, and is not subject to 51% attacks, reflecting fairness in the development process. This will get more people's support. Therefore, it is fairer and more reassuring to choose such a cryptocurrency that has been completely decentralized in the development process.

6. Final stability. After the global consensus, Dogecoin is quite stable. Best used as a currency standard to measure other values. At this time, there will be no need for US dollar stablecoins such as USDT. At this point (after global consensus), Dogecoin is the real stablecoin. USDT is essentially a centralized product, and various panic news broke out not long ago. Your holding of stablecoins may also become waste paper. If you trust the centralized currency issued by a company, it is better to trust the centralized legal currency with better monetary policy control. Centralization replaces decentralization, which completely violates the principle of decentralization. When a stablecoin with a global consensus is created in the decentralized cryptocurrency, these centralized transitional products will lose the market.

Fairness is the cornerstone of consensus. Decentralized cryptocurrency technology is taking the world by storm. Its most essential appeal is the word "fairness". If there are other technologies that can better implement it, it will also become a big trend. Among the many currencies, the one that best reflects fairness has the greatest potential to be globally recognized. This kind of fairness is reflected in the fairness of the whole life cycle such as birth, development process and final result. As far as the birth is concerned, the PoW development team has the unfairness of pre-mining, and the PoS project side has the unfairness of zero-cost reservation. It seems that the coins born after the bull market in 2013 are difficult to rule out the suspicion of pre-mining reservation. The development team can use the zero-cost cryptocurrency in their hands to harvest retail investors at will. Because 2013 was the first bull market, the founders of coins before that were purely social practice for this kind of innovation. He also has no way of knowing how far he can go and what benefits it will bring. After a complete bull market in 2013, many people realized after 2014 that it was possible to create cryptocurrencies to gain wealth quickly. Various types of cryptocurrencies are emerging all the time. One after another continues to the present. A cryptocurrency only needs to be truly decentralized, fair, able to store value, and to have payment, circulation and settlement functions. No other functions are required. Too many functions become blockchain applications, not the main function of currency. Fairness in the process is reflected in sufficient decentralization. It is unfair that the founding team exploits the manipulation of the previously zero-cost cryptocurrency. Centralized cryptocurrencies issued by corporate companies cannot be fair. PoS and various PoS variant mechanisms are holding money and getting rich, which is unfair. It is unfair that cryptocurrencies are too centralized and the mass base is small. A fixed number of cryptocurrencies will still have a relative deflation of more than 5% per year, and it is still unfair for those who hold coins to exploit those who hold coins later. The final result is a truly fair cryptocurrency, which is reflected in the stability of the cryptocurrency after reaching a global consensus. Only micro-inflation can be balanced and eventually stable. These are eliminated one by one, and there is only Dogecoin left.

Comparing the above conditions with the characteristics of Dogecoin, we find that Dogecoin is not optimal under a single characteristic. But the overall quality is the first. Dogecoin is a true decentralized cryptocurrency, the most suitable as the universal currency in the world.